BCT endorses Palmyra’s efforts combating vacant properties

The Burlington County Times published the following Op-Ed on Wednesday, April 8, 2015

Owners must contribute to town’s costs for vacant properties

Posted: Wednesday, April 8, 2015 3:00 am | Updated: 7:08 am, Wed Apr 8, 2015.

Owners must contribute to town’s costs for vacant properties

There is no question that vacant properties can quickly become eyesores.

Sometimes, they create a nuisance for law enforcement, becoming a hangout spot for vagrants and vandals. Often, they create a public health or fire hazard.

They are a drain on township resources.

They’re also a drain on property values in a neighborhood — something about which homeowners in Burlington County, who pay an average of about $6,289* annually in real estate taxes, are keenly aware.

The recession has lingered in New Jersey. While the real estate market is making a bit of a comeback, there are still large numbers of foreclosures, and it can take two years or more for a property to move through the foreclosure process.

As a result, Burlington County municipalities face ongoing issues with vacant properties, as there is little incentive for banks to repair or maintain them.

For homeowners to hold onto what little gains they’ve made in market value, municipalities had to find ways to hold financial institutions accountable, and we applaud those that are trying to do so.

To discourage banks and other non-occupant property owners from allowing homes to languish unattended, Palmyra Borough passed a measure in 2013 requiring that those properties be registered and subject to fees that increase over time.

The law was designed to protect neighborhood property values and help the town recoup some of the costs it incurs in additional policing and code enforcement.

Evesham and Riverton have established similar ordinances.

Palmyra’s law requires property owners to register buildings that fit its specific criteria of vacant and pay a fee that jumps yearly for nonpayment of registration fees.

And while not perfect — only about 50 percent of qualifying property owners have registered — it appears to be working. At a recent borough meeting, officials said they will collect about $75,000 in fees for empty properties this year.

Encouraging owners to maintain vacant buildings benefits municipalities, and it’s a gift to the neighbors of these properties. Sometimes, the only way to get action is to hit ‘em in the wallet. We support Palmyra’s ordinance and others like it.

[End]

* Average residential property tax in Palmyra is $5,164 annually, $1,725 of which is the Local (or Municipal) Property Tax. The balance is comprised of school and county taxes.

 

The Burlington County Times published the following article on Sunday, April 5, 2015

Vacant properties come with rising costs in Palmyra

Posted: Sunday, April 5, 2015 12:15 am | Updated: 6:32 am, Wed Apr 8, 2015.

Vacant properties come with rising costs in Palmyra

By Todd McHale Staff writer Burlington County Times

PALMYRA — Move vacant properties off the market or pay up.

The owners of dozens of empty borough homes will face that scenario this year as the municipality addresses long-term vacancies.

“Vacant properties are an eyesore, result in nuisance complaints, and often create public health issues,” Borough Administrator John Gural said. “They have a serious detrimental effect on our neighborhoods, and too often the banks turn a deaf ear to concerns expressed by municipalities.”

To discourage banks, financial institutions and other vacant-property owners from letting homes languish without any residents living in them for years, the borough passed a law in 2013 requiring that those properties be registered and be subjected to fees that increase over time.

Mayor Karen Scheffler said the measure is designed to protect neighboring property owners and recoup some of the costs incurred by the borough.

“The ordinance is necessary to offset the burden of the additional police presence and code enforcement issues for these properties,” Scheffler said.

The measure defines a vacant property “as any building used or to be used as a residence which is not legally occupied or at which substantially all lawful construction operations or residential occupancy has ceased, and which is in such condition that it cannot legally be reoccupied without repair or rehabilitation.”

For those homes that fit the criteria, the law requires owners to register the property and pay a $500 fee for the first year. The fee jumps to $1,500 for the first renewal of the registration, followed by $3,000 for the second, and $5,000 for the third and subsequent renewals.

About 50 vacant properties have been registered, and officials estimate that another 25 to 30 fit the bill.

“As we become aware of these properties, our municipal clerk notifies the owner and bills them for the vacant property registration fees,” Gural said.

The borough expects to collect about $75,000 in fees for the vacant properties this year alone and even more as time goes on.

“Most of those presently registered are in first renewal status and have paid the $1,500 fees,” Gural said. “Several, however, have paid $3,000 on top of the previous fees paid.”

Following the housing bubble burst several years ago, municipalities across Burlington County and the state have tried a number of ways to deal with the rash of vacant and abandoned properties. Officials say vacant properties not only diminish the value of neighboring homes, but also increase the potential of fire and public health risks along with criminal activity.

“They negatively impact all of the homes in the neighborhoods,” Scheffler said. “We hope the ordinance will incentivize banks to sell these properties to responsible homeowners.”

Todd McHale: 609-871-8163;

email: tmchale@calkins.com;

Twitter: @toddmchale